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Friday, June 23, 2006

Tech Mahindra files DRHP for IPOTech Mahindra files DRHP for IPO

Tech Mahindra, a global leader in providing end-to-end IT services and solutions to the Telecom industry, has filed draft red herring prospectus, DRHP, with Sebi for initial public offering, IPO.

In this issue, the company is going to offer 12.74 million shares. The company plans to dilute 11% of its total equity.

This is likely to unlock value for M&M's shareholders.

Tech Mahindra (formerly known as Mahindra-British Telecom) is the global leader in providing end-to-end IT services and solutions to the Telecom industry. Over 11000 professionals service clients across various telecom segments, from multiple offshore development centers across seven cities in India and UK and 13 sales offices across Americas, Europe and Asia-Pacific.

Majority owned by Mahindra & Mahindra, India’s fifth largest commercial group, in partnership with British Telecom, Europe’s second largest telecom service provider, Tech Mahindra has grown rapidly to become the 8th largest software exporter in India (Nasscom 2005).

Tech Mahindra has plans to raise cash to fund expansion in US, UK and Australia.

M&M informed the BSE that it would sell upto 5.32% stake in Tech Mahindra, TML, a subsidiary of the company, through IPO.

Recently, the company’s board cleared spending of up to USD 300 million on overseas acquisitions. This month, Tech Mahindra set up its Noida development centre employing 2,000 people at an investment of Rs 100 crore.

The Noida centre is the sixth development hub for the company after Chennai, Bangalore, Mumbai, Pune and Kolkata.

Tech Mahindra has reported a net profit of Rs 235.4 crore (Rs 2.35 billion) for the year ended March 2006, a growth of 130%. The company’s gross revenue grew by 31% at Rs 1,242.7 crore (Rs 12.42 billion).


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